The person from the HSE i was talking to today was telling me that it was 3 years from time of application, not from entering a nurins home - ie if you had paid 2 years privately and then applied for fair deals that the 7.5% would apply for the subsequent 3 years, which seems contrary to the information on the HSE website and the Citizens Information website - hence me doubting myselfI presume that the 3 year cap refers to three years of occupation of a nursing home. It would make no sense otherwise.
Brendan
The person from the HSE i was talking to today was telling me that it was 3 years from time of application, not from entering a nurins home - ie if you had paid 2 years privately and then applied for fair deals that the 7.5% would apply for the subsequent 3 years,
So there has been cash to pay nursing home fees to date privately; and there is the potential to cover the costs for the remaining 18 months to get beyond the 3 year cap timeframe. Due to the value of the home it is beneficial to pay the fees privately rather than give up 7.5% of the value of the home for the first 3 years of nursing home care.That makes sense but would it come up that often?
First of all, the average stay is only about 18 months.
Secondly, would you not avail of the loan from Day 1 ?
Brendan
Note that the loan is 7.5% of the value of the house OR the nursing home fees paid, whichever is lower.So there has been cash to pay nursing home fees to date privately; and there is the potential to cover the costs for the remaining 18 months to get beyond the 3 year cap timeframe. Due to the value of the home it is beneficial to pay the fees privately rather than give up 7.5% of the value of the home for the first 3 years of nursing home care.
However if the 7.5% cap only kicks in from application for fair deals scheme rather than from entering the nursing home it alters the decision making process in terms of best next step.
What's a valuable house ? if it’s a €million and she is the sole owner it is likely she won’t qualify for Fair Deal.So given the following circumstances:
What would recommendations be for next steps in terms of fair deals vs loan?
- She has been in a nursing home for the past 18 months and has paid privately
- Has a valuable home currently on the market
- Has not yet applied for Fair Deals Scheme
Thank you,Under Fair Deal, if she owns a house she is only assessed on its value for 3 years.
If she is already in under Fair Deal, she can then sell the house and the proceeds will only be assessed for the remainder of the 3 years.
If she sells the house before being accepted for Fair Deal she will be assessed on the proceeds indefinitely.
Don’t think it makes sense to sell her valuable home now, maybe sell after being accepted.
One of my parents lived for 7 years under Fair Deal.
If your mother was accepted for FD she would be financially assessed, your mothers only asset is a valuable house and her only income is the state pension. Putting aside any disregards she might be allowed, her contribution would be 7.5% of the value of the house for each of the first 3 years plus 80% of her state pension. Under FD you will never pay more than the actual cost of your care. For those who don't have savings or whose savings are gone, the nursing home loan can be applied for to pay the amount assessed on the house.So if she got accepted on Fair Deals before selling the home what would the financial contribution be?
What's a valuable house ? if it’s a €million and she is the sole owner it is likely she won’t qualify for Fair Deal.
If she does qualify for Fair Deal, the house value is only assessed for 3 years.
If she is already in under Fair Deal, she can then sell the house and the proceeds will only be assessed for the remainder of the 3 years.
If she sells the house before being accepted for Fair Deal she will be assessed on the proceeds indefinitely.
Don’t think it makes sense to sell her valuable house now, maybe sell after being approved for Fair Deal and funding granted.
One of my parents lived for 7 years under Fair Deal.
I haven't seen an upper limit quoted anywhere either, It would have been clearer if I said benefit rather than qualifying. If as a single person you have assets of say a €million, your annual assessed amount on those assets alone would be €75K which would pay for most nursing homes, so you might not benefit from FD at that time anyway.What's the upper limit on home or other asset values before qualifying? I haven't seen one quoted anywhere.
Everyone who qualifies on medical grounds will undergo Financial Assessment. Limit is once the contribution assessed equals or exceeds the cost of the nursing home, no state assistance is required, client pays the full cost but after 3 years, the principal private residence (or proceeds if sold in the meantime) is dropped from the Assessment and some state contribution may become payable. Also, if paying the nursing home fees depletes the resources sufficiently, a contribution may become payable even sooner.What's the upper limit on home or other asset values before qualifying? I haven't seen one quoted anywhere.
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